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Can someone explain the effect on wage type processing for
each of the specifications for processing class 71 when they are added to a tax
model as tax classes?

How can I decide if I should include a tax class in a tax model if I don’t know the effect of
that tax class on how taxes are going to be calculated?

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beechu
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Hello Robin,

Each specification (tax class) of processing class 71 should be mapped to any one of the BSI Earning/Deduction/Benefit plan code. The tax classes should be designed in such a way that it matches with BSI codes.

BSI TUBs wage accessor changes states what are the changes to the particular BSI code, and same changes need to implemented in R/3 by changing the characteristics of that particular tax class in the taxability mdoel.

Taxability model should be designed in such a way that, it meets the legislation.

Thanks,

Beechu